MySpace is about to have a major wave of layoffs, according to Techcrunch.
Techcrunch sources say that the layoffs will likely affect between 300 and 500 employees. It’s unclear if these numbers apply to MySpace alone or its parent company Fox Interactive Media, but MySpace makes up around 1600 of the 2900 employees in FIM, so it’s likely that the social network will be hit hard.
Contacted for comment, a Fox Interactive Media spokesperson issued the following statement to TechCrunch:
“Like any company with new leadership, Fox Interactive Media is reviewing every aspect of our operations, performance and structure. It’s no secret that we are looking for ways to improve our products, increase the value of our digital assets, and enhance the overall financial strength of the company.”
It is amazing how far MySpace has fallen in less than a year. At a time when its rival Facebook is riding high and Twitter is grabbing all the mainstream attention, MySpace is facing the combination of plummeting traffic and declining future revenue when its Google deal terminates in mid 2010.
Can MySpace come back and fight Facebook or will it slowly shrink away over the next 18-24 months?
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